Let's keep it simple; 1) enter your W-2 precisely as shown (box 12 & 14 too) and 2) enter all of your employee moving expenses. TurboTax will do the rest. This is one of the few, highly beneficial deductions, so while it may take some time to enter, it can be worthwhile. Now, I'll explain what will happen.
Moving expense reimbursements reported in box 14 are included in your W-2 box 1 wages, which means you pay tax on them. Therefore ALL of your moving expenses, will qualify for the deduction. If you had amounts in box 12 code P, that means they weren't included in your box 1 wages (which ultimately means they can't be deducted because you already got them tax free).
Even if you had box 12 code P moving expenses, you should still enter all of your qualified moving expenses in the software. Any expenses in excess of this amount will qualify for the deduction.
To enter these expenses, log in
to TurboTax and follow the steps below:
- Click 'Take me to
my return'
- Next, select the 'Federal
Taxes' tab and
then click the 'Deductions & Credits' tab below it
- Scroll down to the 'Other
Deductions & Credits' section and click the blue hyperlink 'Show more'
- Click 'Start' or
'Update' next to 'Moving
Expenses'
- Follow the prompts and answer
the questions in this section. Click the blue hyperlinks on most screens
that say 'Learn more' for more information about what can be included.
